not vested
Carbonite (CARB)
For investors who appreciate business transformations, meanwhile, Carbonite (NASDAQ:CARB) might be the play.
Carbonite started as a largely consumer-focused company. But it has expanded into small and medium businesses with help from an aggressive M&A strategy.
That strategy continued this year, with the recently closed $619 million acquisition of Webroot. Yet even with those deals driving growth, CARB looks reasonably cheap.
Pro forma for the Webroot purchase, the stock trades at 11-12x 2019 EBITDA guidance. Looking to 2020, analysts see well over $2 per share in EPS.
With a sharp pullback of late, that suggests just an 11x forward EPS multiple. That might be far too cheap — particularly if the strategy here is on point. While larger rivals chase larger deals, Carbonite might be able to create value by chasing smaller fish.
Source: Investor Place